Bitcoin Prepares to Surge Before Middle East War Breaks Out..."If $80,000 is Broken, It's Game Over"

▲ Bitcoin (BTC)

Despite rising tensions in the Middle East and concerns over surging oil prices, U.S. stock markets continued their strong performance, reaching all-time highs. At the same time, Bitcoin (Bitcoin, BTC) is showing signs of a rebound near its long-term support level.

On May 1 (local time), crypto analyst Lark Davis analyzed on his YouTube channel that the Nasdaq index has risen approximately 20% from its recent low and is trading 5% higher than its previous peak. The S&P 500 also showed a similar trend, maintaining its upward momentum, but the possibility of reconfirming support levels to alleviate short-term overheating was raised. Meanwhile, Bitcoin rebounded from its 20-day exponential moving average, confirming short-term support.

The biggest variable in the market is geopolitical risk in the Middle East. Tensions are rising again as the possibility of a U.S. strike inside Iran is being discussed. An analysis suggests that if an actual conflict occurs, Iran could target Middle Eastern energy infrastructure, which could have a significant impact on the global market. Brent crude prices rose to $116 per barrel, showing a signal of a trend reversal to the upside, which is identified as a factor that could stimulate inflationary pressure.

Within the virtual asset market, the view that the current phase is a long-term opportunity is spreading. Bitcoin is receiving support near its long-term trendline that has continued since 2018, and its relative value compared to traditional finance has also reached a major support zone. This trend is interpreted as a structure similar to past gold price patterns, and expectations for long-term upside potential are raised if the support level is maintained. Ethereum (Ethereum, ETH) is rebounding from its 50-day exponential moving average and attempting to break above $2,400, while Solana (Solana, SOL) is seeking a rebound after repeated support tests in the $67 range.

In terms of market interest, the decreased public interest in virtual assets is actually interpreted as a positive sign. Although virtual asset-related content appeared as the most hidden topic on X (formerly Twitter), past cases suggest that such periods of stagnation have acted as a starting point for strong subsequent rallies. Meanwhile, AI-related stocks continue their sharp rise, absorbing market funds. AMD and Qualcomm have shown rapid surges in a short period, indicating a concentration of investment funds.

Meanwhile, the movements of virtual asset-related companies such as Strategy and Galaxy Digital are also noteworthy. Strategy has formed upward momentum in technical indicators and is ready to lead the Bitcoin trend, while Galaxy Digital is securing large-scale power for its Texas data center, raising expectations for its transformation into a data infrastructure company. If Bitcoin breaks above $80,000, the bearish sentiment in the market is likely to weaken significantly.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*